By Jeph Ajobaju, Chief Copy Editor
ReelFruit based in Lagos has raised $3 million funding to expand production of dried mango, pineapple, mango, and other fruits in its portfolio to boost local consumption and grow exports 10 times to 15 metric tonnes (MT) within a year.
The funding was led by Alitheia IDF with a $2 million investment. Other investors in this Series A round include Samata Capital and Flying Doctor Healthcare Investment Company.
ReelFruit was advised by New Practice on the deal, according to reporting by Nairametrics.
ReelFruit plans to purchase a new plant in Ogun State to raise dried fruit output from 6 mt to 30 mt and employ around 200 employees in the first year.
The company said it will continue to create new products for local and international markets with its increased supply of dried fruit.
It also plans to expand collaboration with its 250 registered mango and pineapple farmers for high quality raw materials as well as create an agricultural extension services programme.
The initiative will help increase fruit harvest and ensure constant supply of high quality raw materials.
ReelFruit said it will broaden local and worldwide sales channels to meet the high demand for its dry fruit snacks.
It plans to create an e-commerce platform in the fourth quarter of 2021 (Q4 2021) for direct sales to the United States and open more B2B options, such as white-labelling and co-packing to facilitate import substitution.
Doubling sales
Reelfruit hopes to double sales by November from the previous year as its products will be available for local purchase, reducing reliance on imports.
“This investment takes ReelFruit to the next level. We can meet increased demand for our products and tackle one of our biggest challenges – raw material supply.
“We’re thrilled that this will unleash a greater impact on our value chain by increasing farmer incomes and creating up to 300 decent jobs for Nigerians,” said Affiong Williams, CEO/founder.
Tokunboh Ishmael, Alitheia IDF co-founder added: “Alitheia IDF is proud to support ReelFruit’s ongoing efforts to boost food production in Nigeria and positively impact communities through deliberate partnerships with local farmers, distributors, and retailers.
“The investment will strengthen the company to unlock further growth, upskill farmers and improve economic outcomes for thousands of women who play a significant role in the production of ReelFruit’s products.”
